Factors of Influence in Choosing Alternative Accommodation:A Study with Reference to Pondicherry, a Coastal Heritage Town

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Procedia - Social and Behavioral Sciences 62 ( 2012 ) 1127 – 1132

WC-BEM 2012 Factors of influence in choosing alternative accommodation:A study with reference to Pondicherry, a coastal heritage town

Gunasekaran.Na*, Victor Anandkumarb

aDoctoral Research Scholar, Dept. of Management Studies, Pondicherry University, Puducherry, India bAssociate Professor, Dept. of Management Studies, Pondicherry University, Puducherry, India

Abstract

Accommodation establishments such as Commercial homes, Bed & Breakfast and Guest Houses provide alternatives to tourists who prefer accommodation other than traditional hotels. The purpose of this research study is to identify the factors that lead tourists to choose such alternative accommodation. Given the differences in the product both in terms of acuity and actuality, the tive in choosing alternative accommodation may be different from traditional accommodation. The study location - Pondicherry, a heritage coastal town in India - experienced a recent spurt in the growth of alternative accommodation. Alternative hoteliers provide a different tourism product with several points of differences when compared with traditional hoteliers. From the primary data collected from guests at alternative accommodations, the factors that influenced their decision to stay are identified using Factor analysis. Knowledge and understanding of these factors will help alternative hoteliers to develop meaningful and appealing points of differences. © 2012 Published Published by by Elsevier Elsevier Ltd. Ltd. Selection Selection and/or and/or peer review peer review under responsibility under responsibility of Prof. Dr. of Huseyin Prof. Dr. Arasli Hüseyin Arasli Keywords: alternative accommodation, tourist motivations, stay influencing factors

1. Introduction

Accommodation is a fundamental factor of the tourism product to the tourists. The type, extent and nature of accommodation determine the volume and value of tourism that is possible at any destination (Henning & Willemse, 1999; Nuntsu, Tassiopoulos & Haydam, 2003). While tourist accommodation typically refers to traditional hotels of several categories, alternative accommodation refers to establishments such as Guest houses, Service apartments and Commercial homes that provide paid lodging to the tourists on short-term basis. They differ

touch.

The concept of commercial homes is not new. The practice originated in Europe, and tourist homes operated by private homeowners have always been a fixture in popular American vacation areas (Nuntsu et al, 2003). However, in India, the practice is a decade old. The Ministry of Tourism (Government of India) introduced the concept of Commercial homes (specifically, the Bed & Breakfast and Homestay Establishments) as part of its globally acclaimed Incredible India campaign in 2001-12.

* Corresponding Author Gunasekaran.N. Tel.: +91-413-221-3439 E-mail address: [email protected] (Gunasekaran.N)

1877-0428 © 2012 Published by Elsevier Ltd. Selection and/or peer review under responsibility of Prof. Dr. Hüseyin Arasli doi: 10.1016/j.sbspro.2012.09.193 1128 Gunasekaran.N and Victor Anandkumar / Procedia - Social and Behavioral Sciences 62 ( 2012 ) 1127 – 1132

Pondicherry is a heritage town on the south-east coast of India with a vibrant tourism industry and an ancient history dating back to 200 B.C. The recent years have seen a mushrooming of alternative accommodation facilities such as guesthouses, commercial homes and service apartments in Pondicherry. This paper attempts to identify the factors that influence choose alternative accommodation. By definition, the alternative accommodation product differs from the traditional hotel room in terms of features, facilities and the benefits sought by the guests. By understanding the influencing factors, the alternative accommodation enterprises will be in a position to develop marketing strategies that appeal to this segment of tourists and create meaningful points of differences.

2. Review of literature

Reynolds & Emenheiser (1996) in their pioneering study had suggested a future trend wherein alternative accommodation providers such as Bed & Breakfast operators would be achieving a more significant role in the hospitality industry. According to Novelli (2005) and Scarinci and Richins (2008), the reasons for the growing popularity of niche segments such as the alternative accommodation include increased competition and market fragmentation, more discerning and difference-seeking customers and communication technology. Through this communication technology, the visibility of alternative accommodation which are usually remote and not in the mainstream, and direct accessibility for tourists with a penchant for difference, are greatly enhanced.

The literature (Foxley, 2001; Canwell and Sutherland, 2003; Professional Association of Innkeepers International (PAII), 2009) on the topic provides a taxonomy of alternative accommodation. Accordingly, there are three types of alternative accommodation, namely Service apartments, Guest houses and Commercial homes such as Homestay and Bed and Breakfast. Further, the Commercial homes are classified by PAII into six categories such as Homestay, Bed & Breakfast, Bed & Breakfast inn, Bed & Breakfast cottages, Bed & Breakfast hotel and Country Inn. The Service apartment concept has no standard definition but it is typically considered to provide short-term, self-contained accommodation with additional services. (Foxley, 2001). Guest house is smaller than average hotel and with a limited number of rooms and facilities. (Canwell and Sutherland, 2003). Commercial home refers to a

interaction take place with a host and/or family usually living on the premises and with whom public space is, to a degree, shared (Stringer, 1981; Lynch, 2005; Lynch, McIntosh, & Tucker, 2009; McIntosh, Lynch and Sweeney, 2010).

Several researchers have advocated undertaking serious research on this segment of accommodation providers, taking int (Fleischer & Pizam, 1997; Dawson & Brown, 1988; Ingram, 2002; Morrison, 2002; PAII, 2005). Incidentally, certain categories under this segment are relatively underexplored (Sweeney and Lynch, 2007; McIntosh, Lynch and Sweeney, 2007). In the Indian context, despite the drive by the Destination Marketing Organization to promote Bed & Breakfast and Homestay accommodation, this segment is virtually unexplored in terms of scientific research. This is a stimulus to undertake this study.

One of the directions that researchers have taken is to study the motivational aspects that explain why tourists choose alternative accommodation. The existing literature, though limited in studying the above said aspect, may be categorized as in terms of opinions from the supply-side (namely, the alternative hoteliers) and the demand- side (namely, the guests at alternative accommodation). The supply-side studies have identified the perceived motivations of tourists in general (Morrison, Pearce, Moscardo, Nadkarni & O'Leary, 1996; Sallee, 1996; Dawson & Brown, 1988) or that of a specific demographic group, say the business traveller market (Radder & Wang, 2006) or confined to a particular market (Pearce, 1990; Nuntsu et al, 2003). Previous studies have found that alternative hoteliers perceive natural setting (to suggest location and geographic area), quality service, authentic experience as the main motives which draw tourists. Gunasekaran.N and Victor Anandkumar / Procedia - Social and Behavioral Sciences 62 ( 2012 ) 1127 – 1132 1129

The supply-side studies have identified the stated motivations of tourists, say among the senior market (Wuest, Tas, & Emenheiser, 1996) or from a special interest group, say the rural/countryside tourists (Pearce, 1990; Ingram, 2002). A market-specific study (Gilbert and Terrata, 2001) suggests tourist demographics itself as a motivational factor to choose alternative hoteliers. An interesting study by Wu and Yang (2010) analyses the motives to revisit a bed & breakfast and identifies preference for certain service quality elements as the primary reason. Previous studies have found out that tourists choosing alternative accommodation are influenced by factors such as enjoyment of country lifestyle and scenery, alternative to a hotel or a getaway to escape the larger hotel, meet the local people and enjoy the local heritage (Norman, 1988, Upchurch, 1996; Ingram, 2002). Some researchers have chosen to focus on the motivational pull of unique attractions associated with alternative hoteliers. - been studied in detail (Warnick & Klar, 1991; Emerick & Emerick, 1994; Morrison et al, 1996; Dawson & Brown, 1988; Ingram, 2002). Existing literature has identified individual variables as key motivators. However, considering the number of variables that influence a , there is a need to identify factors (consisting of related variables) of influence which are more actionable and manageable from the marketing and operational point of view. This study assumes significance in this context.

3. Research Methodology

The respondents for the study included 123 domestic and international guests at the predetermined alternative accommodation enterprises representing all the three categories, namely Guest houses, Service apartments and Commercial homes (including variants of Bed & Breakfast businesses and Homestay) during March 2012. The respondents were identified using a systematic sampling approach. Every nth guest (depending on the prevailing occupancy) was approached and given a questionnaire for self-completion. The respondents had to meet the inclusion criteria such as bona fide guest at an alternative accommodation, independent traveller and decision- maker in case of groups. The data collection locations were determined to represent the geographical spread of Pondicherry and also the different budget ranges.

The data collection instrument had two sections. Section-1 was designed to gather personal details of the tourists and section-2 had 22 variables on which the respondent had to respond on a 5-point Likert scale with -point scale would have given inadequate options, while a 7-point scale would have demanded a high level of sensitivity and discrimination. Hence a 5-point scale is sufficient and meaningful enough for this situation. The variables were identified from the literature review and expert opinion from tourism academics and professionals.

4. Data analysis and findings

Factor analysis (using principal component analysis) was used to identify the factors in influence in choosing alternative accommodation. Data collected from a sample of 123 respondents who had rated their agreement/disagreement with the 22 stated variables in the questionnaire was subject to Factor analysis. The 22 items were factor analyzed using Principal Component analysis after ascertaining the appropriateness of Factor analysis (Malhotra, 2005) using the 5 level) and Kaiser-Meyer-Olkin (KMO) statistic (>0.6). Out of the 22 items used in the analysis, one was dropped as it had a small extraction value. Factors with eigenvalue greater than 1 and a loading of 0.5 and above were then rotated using varimax rotation with Kaiser normalization.

In order to summarize the information contained in the original variables, a smaller number of factors should be extracted. In this research, approaches based on eigenvalues and Scree plot are used to determine the number of factors. Based on the eigenvalue criterion (that is, eigenvalue > 1), five factors emerged. To confirm the number of factors, a scree plot was drawn. Items belonging to factors for which no reasonable interpretation could be found or those that had very low additional explanatory power in explaining were dropped. 1130 Gunasekaran.N and Victor Anandkumar / Procedia - Social and Behavioral Sciences 62 ( 2012 ) 1127 – 1132

Finally, four factors were retained explaining 82.5 per cent of the total variance. To ensure that the variables for each of the factors were internally related, their Cronb acceptable internal consistency reliabilities, that is, greater than 0.6 (Nunnally, 1967). The summary result of the factor analysis of all the elements and sub-elements is presented in Table-1. The factor analysis yielded four dimensions that were labelled as: homely atmosphere, value for money, local culture and guest-host relationship.

Table-1. Final factors, items, loadings, communalities and Eigen values

Factors Significant variables Factor Communalities Eigen % of loadings values variance F1: Homely 1) Own space 0.715 0.868 9.015 40.977 atmosphere (N=9) 2) Wanted a change 0.944 0.939 3) Homely atmosphere -0.836 0.944 4) Hygiene 0.966 0.965 5) Security 0.822 0.822 6) Food quality -0.822 0.855 7) Something different 0.645 0.937 8) Local environment 0.723 0.920 9) Flexibility stay 0.777 0.947 F2: Value for 1) Value for money -0.749 0.906 4.044 18.383 money 2) Pondicherry experience 0.929 0.970 (N=6) 3) Readily available 0.762 0.984 4) Not exorbitantly price 0.634 0.988 5) Online reviews 0.762 0.954 6) Personalized hospitality -0.621 0.841 F3: Local touch 1) Interaction with locals 0.854 0.892 2.817 12.806 (N=4) 2) Didn 0.894 0.941 3) Local culture 0.764 0.650 4) Avoid the crowd 0.514 0.639 F4: Guest-Host 1) Cordial relationship with host 0.918 0.977 2.280 10.362 relationship (N=2) 2) Bad experience with hotels from the 0.925 0.924 past

The homely atmosphere factor is the first factor identified through factor analysis and this factor includes nine items, namely Own space, Wanted a change, Home-like, Hygiene, Security, Food quality, Something different (from that of traditional hoteliers), Local environment/ambience and Flexibility in stay. This factor accounts for 40.97 per cent variance. It highlights the importance of maintaining a friendly atmosphere and providing service with a personal touch. The Value for money factor includes items such as value for money than hotels, Pondicherry experience, Ready availability, Not exorbitantly priced, Positive online reviews and Personalized hospitality. This factor accounts for 18.38 per cent variance. It stresses the need to match the perceived value with the experienced value so that the Value for money proposition holds good. This factor needs to be borne in mind in the pricing decision of alternative hoteliers. The Local culture factor includes items such as Interaction with locals, Did a choice (for traditional hoteliers), Local culture and Avoid the crowd. This factor accounts for 12.80 per cent variance. It highlights the importance of maintaining a local touch and providing an authentic experience through interactions, displays, cuisines and tangible evidence. The Guest-Host relationship factor included items such as cordial relationship with the host and Bad experience with hotels from the past. This factor accounts for 10.36 per cent variance. It stresses the need for a cordial relationship between the Guest and the Host since the first pre-trip contact to the in-trip interactions and post-trip communication.

5. Discussion of results Gunasekaran.N and Victor Anandkumar / Procedia - Social and Behavioral Sciences 62 ( 2012 ) 1127 – 1132 1131

- emerged as a key motivator in several studies (Warnick & Klar, 1991; Emerick & Emerick, 1994; Morrison et al, 1996; Dawson & Brown, 1988; Ingram, 2002). This study also attests to this factor being a key influencer. Also, this research brings out the Value for money proposition identified with alternative accommodation. Considering the items that comprise this factor, it emerges that the value proposition is not only in terms of pricing, but also in terms of the overall experience for the overall cost incurred by the Guest. An interesting observation is the vast differences between the factors that influence the choice of traditional hoteliers and alternative hoteliers. Chu and Choi (2000) have compiled through an extensive literature review, a useful set of attributes (such as cleanliness, location, room rate, security, service quality, and the reputation of the hotel) that are considered by most tourists in choosing a traditional hotel. In contrast, this and other studies focusing on alternative accommodation have identified attributes related to factors such as homely atmosphere, authentic local experience and cordial guest-host relationship. Therefore alternative accommodation providers should attempt to create and sustain points of differences which set them apart from traditional hotels.

6. Conclusion The results of the study suggest that there are four factors, namely homely atmosphere, value for money, local touch and guest-host relationship that influence the tourists to choose alternative accommodation such as Guest houses, Service apartments and Commercial homes (including Homestay and Bed & Breakfast). An interesting finding from the study is the Value for money perception of the tourists concerning alternative accommodation. This is a new finding on the topic and a useful addition to the literature. This may be explained by the relatively price- sensitive tourists and an overall value for money positioning of the destination. Understanding the key influencing factors in choosing alternative accommodation will offer some direction in shaping facility, service and marketing decisions of alternative hoteliers. This will also help in creating and sustaining meaningful points of differences for alternative hoteliers.

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